$7m to assess irrigation viability in South Canterbury

A
new funding agreement will investigate the viability of the
Hunter Downs irrigation scheme for up to 40,000 ha in South
Canterbury, says Primary Industries Minister Nathan
Guy.

‘The Government’s Irrigation Acceleration Fund
will provide $7.044 million over two years to co-fund
technical investigations and design work to determine if an
irrigation scheme is viable, both from a technical and
economic perspective,’ says Mr Guy.

‘This will be
matched by funds from shareholder equity and the scheme’s
partner, Meridian Energy.

‘If the scheme proves to be
viable it has the potential to increase income in the
Waimate and Timaru districts by $830 million per annum and
create 1,800 jobs.

‘It would also provide long term
security for agriculture in these districts and provide
landowners with greater confidence around production and
investment decisions.

‘The irrigation infrastructure
also has the potential to benefit the nationally significant
wetland, Wainono lagoon. A consequence of the scheme will be
extra flows of water into the lagoon that will achieve
better water quality outcomes,’ says Mr Guy.

If viable,
the scheme will draw water from the Lower Waitaki River and
depending on the outcome of the investigation, construction
could begin late 2016 and be completed by the end of
2019.

Hunter Downs Development Company is a joint venture
between Hunter Downs Irrigation Ltd and Meridian. Initial
development costs were met by Meridian
Energy.

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